PETALING JAYA: The launching of new projects and new phases of existing developments is expected to drive UEM Sunrise Bhd
’s growth prospects in the quarters ahead.
For the first quarter ended March 31, 2023 (1Q23), the property developer’s revenue declined by 42.2% year-on-year (y-o-y) to RM240.8mil. Net profit decreased by 19.3% y-o-y to RM15.4mil or an earnings per share of 0.30 sen.
In a filing with Bursa Malaysia, the group said revenue contribution for the quarter under review was mainly supported by projects that are advanced in their development progress, namely, Residensi AVA, Residensi Allevia and Residensi Astrea in the central region.
As for the southern region, the main revenue contributors were Aspira ParkHomes, Aspira Square and 68° Avenue.
Revenue in 1Q22 was derived from the sale of 19 industrial plots in phase 3 SiLC amounting to RM127mil and a pocket of land in Iskandar Puteri. UEM noted the contribution from land sales was very minimal in 1Q23.
On the other hand, UEM’s gross profit margin improved to 44% in 1Q23 as compared with 24% in 1Q22.
This was underpinned by the recognition of project cost savings, while its operating expenses and operating profit improved by 7% and 12%, respectively, compared with 1Q22
UEM chief executive officer Sufian Abdullah said the company’s gross margins in 1Q23 were pursuant to higher margins for selected completed developments in both central and southern regions.
This was in addition to the contribution of the settlement of remaining units in Aurora Melbourne Central.
“We are entering into the second stage of Triage this year after achieving the majority of the initiatives rolled out last year.
“Triage is the first part of our three-phase strategic turnaround plan and takes place from 2022 to 2023. This will be followed by Stabilise (2024 to 2025) and Sustain (2026 and beyond).
“Leveraging on this momentum, we will continue to strengthen fundamentals and deliver launches as planned to further increase stakeholders’ confidence in the company.
“Among our endeavours this year is to reinforce our pipelines and launch new projects worth RM2.5bil to the market. We are also targeting sales of RM1.5bil as a follow through to the planned launches,” he said in a statement yesterday.
UEM will start with the launch of The MINH in Mont’Kiara towards the end of May, which will be followed by The Connaught One in Cheras before the end of June. There is also an additional new development in Kiara Bay, Kepong in the third quarter this year.
UEM is also planning to launch more landed homes in Serene Heights, Semenyih and the southern region, particularly in Iskandar Puteri.
